Factory audit

Huawei Factory Inspection Introduction 

Huawei is a global leader in information and communication technology (ICT) solutions. Eliminating the digital divide and promoting harmony and sustainable development of the economy, environment and society has been Huawei's long-term sustainable development vision. To this end, Huawei not only supports the realization of the United Nations' Sustainable Development Goals, but also closely cooperates with customers and suppliers upstream and downstream of the supply chain, dedicated to building a sustainable and better fully connected world. 

"Huawei Supplier Social Responsibility Behavior Guidelines"

  "Huawei Supplier Social Responsibility Behavior Guidelines" (hereinafter referred to as "this guideline") is formulated in accordance with customer requirements, referring to the "Responsible Business Alliance Code of Conduct" and the "JAC Supply Chain Sustainability Guideline", and combining with Huawei's CSR audit and certification standards. Huawei requires suppliers to abide by all applicable laws and regulations in the country/region where they operate, and this serves as a prerequisite for cooperation with Huawei. Huawei encourages suppliers to adopt internationally recognized industry standards and best practices in CSR management, and continuously improve their CSR management level. 

Under reasonable notification, Huawei has the right to conduct on-site audits of suppliers to assess their compliance with this code. Huawei integrates CSR into the entire procurement process, including material certification, supplier certification, selection, daily management, performance evaluation, and exit management throughout the lifecycle. CSR is also incorporated into the performance assessment of suppliers. For suppliers with good CSR performance, Huawei will increase their procurement share under the same conditions and offer priority business cooperation opportunities; for suppliers with poor CSR performance, especially those who violate the red line requirements of CSR, Huawei will require them to make rectifications within a time limit, and at the same time reduce their procurement share or limit their business cooperation opportunities until the partnership is terminated. 

This guideline applies to suppliers who provide products and/or services to Huawei Investment Holdings Limited and/or its global subsidiaries and affiliated companies (collectively referred to as "Huawei"). This guideline applies to all employees, including temporary workers, foreign workers, apprentices, student workers, contract workers, direct employees and other types of staff. 

I. Labor Rights and Interests

1.1 Freedom of Employment 

The supplier must ensure that all employees are hired voluntarily. The supplier must not employ any form of slaves (including modern-day slave labor), forced laborers, bonded laborers, trafficked persons or prison laborers. The supplier must not restrict personal freedom, not detain identity documents, and not traffic in persons, including not transporting, sheltering, recruiting, transferring or receiving such laborers or services through threats, coercion, force, abduction or deception. Employees must not be required to pay deposits, recruitment fees or other fees to the employer or agent. 

1.2 Child Labor and Juvenile Workers 

1. The supplier shall comply with all applicable local and national laws and regulations regarding the minimum working age and shall not employ child labor. "Child labor" is defined as follows: 

(1) Individuals below the minimum employment age set by the country/region; or in cases where there are no relevant legal provisions, 

(2) Those who are below the age for completing compulsory education; or in cases where there are no relevant legal provisions, 

(3) Persons under the age of 15. 

2. Workers under the age of 18 are not allowed to engage in any work that may endanger their health or safety. 

3. Suppliers should ensure the protection of student workers or apprentices in accordance with applicable laws and regulations, especially for cases where child labor or underage workers may be involved. 

1.3 Working Hours 

The supplier should abide by all applicable laws and regulations concerning working hours and rest. All overtime work must be voluntary. The standard working week (excluding overtime hours) should be determined by law but should not exceed 48 hours, and the total weekly working hours should not exceed 60 hours. Employees should have at least one day of rest for every six consecutive working days. 

1.4 Salary and Benefits 

The compensation paid by the supplier to its employees should comply with all applicable wage laws, including those concerning minimum wage, overtime pay, and statutory benefits. The supplier should pay the employees their wages in full and on time, and provide clear and understandable pay slips. 

1.5 Humanitarian Treatment 

The supplier is prohibited from using violence, including but not limited to verbal abuse, threats, corporal punishment, sexual harassment or physical coercion of the employees. They are also not allowed to conduct illegal searches or searches of the opposite sex, nor are they permitted to threaten to carry out such actions. 

1.6 Non-discrimination 

Suppliers are prohibited from discriminating against employees in any employment-related actions such as hiring, salary, promotion, rewards, training opportunities, dismissal, etc., based on factors such as race, skin color, age, gender, sexual orientation, gender identity and expression, ethnicity or nationality, disability, pregnancy, religious belief, political affiliation, membership in a social group, protected genetic information, or marital status. They are also not allowed to require employees or potential employees to undergo medical tests or physical examinations that may have discriminatory intentions. 

1.7 Freedom of Association 

The supplier should, in accordance with local laws, respect the rights of all employees to voluntarily form and join trade unions, engage in collective bargaining and peaceful assembly, and to refuse to participate in such activities. The supplier should establish an effective mechanism for labor-management communication and hold regular meetings with employees or their representatives. Employees and/or their representatives should be able to openly communicate with management regarding working conditions and management practices and express their opinions and concerns without fearing discrimination, retaliation, threats or harassment. 

II. Health and Safety

The supplier shall provide a safe and healthy working environment. Eliminate any working conditions that seriously endanger life safety or health. Prevent any major fires or explosions from occurring, and prevent fatal accidents from happening at the work site. 

2.1 Working Conditions 

1. The supplier shall obtain, maintain and update all necessary health and safety permits, and comply with the relevant regulations of these permits. 

2. The supplier should identify and assess potential occupational health and safety risks (including fire prevention, industrial hygiene, heavy physical work, machine protection, etc.), and eliminate or reduce these risks through measures such as eliminating hazards, substitution, engineering controls, preventive maintenance, and safe work procedures (including lockout/tagout), as well as providing appropriate personal protective equipment. Additionally, appropriate measures should be taken to protect the safety and health of female workers, especially pregnant and lactating female workers. 

3. The supplier should establish necessary procedures and systems to prevent, manage, track and report work-related injuries and illnesses, and implement corrective measures to eliminate the impact and help employees return to work. 

4. The supplier should provide appropriate health and safety training to the employees in the local language and post relevant health and safety information in the workplace. 

2.2 Living Conditions 

The supplier should provide employees with clean bathroom facilities and drinking water. In case necessary, they should also offer clean and hygienic food, storage and dining facilities. The employee dormitories should be kept clean and safe, as well as having a reasonable living space. 

2.3 Emergency Preparedness 

The supplier should identify and assess potential emergencies and incidents, including but not limited to fires, explosions, fatal accidents, mass poisoning, etc., and through the implementation of emergency plans and response procedures, such as emergency reporting, on-site first aid, notification and evacuation procedures, regular training and drills, and recovery plans, minimize the impact on personnel, the environment, and property. 

2.4 Absolute Rules 

The supplier should adhere to the following safety rules, ensuring that all employees fully understand and comply with them, and also supervise their implementation: 

1. High-altitude work 

(1) Never engage in any high-altitude work without undergoing proper training and obtaining the necessary qualifications. 

(2) Always wear appropriate personal protective equipment when performing work at heights. 

(3) Never walk or stand under the lifted objects. 

(4) When performing work at heights, never throw tools or other items. 

2. Driving Operations 

(1) Always wear a seat belt when driving or riding in a vehicle. 

(2) During driving, never use a mobile phone. 

(3) Never drive beyond the speed limit; 

(4) Never drive while fatigued. 

3. Live-line Work 

Never engage in live-line work without undergoing proper training and obtaining the necessary qualifications. 

4. Alcohol or drugs 

Never work while under the influence of alcohol or drugs. 

III. Environmental Protection

3.1 Environmental Permits and Reports 

The supplier shall obtain, maintain and update all necessary environmental permits (such as emission monitoring), approval documents and registration certificates, and comply with the requirements regarding operation and reporting stipulated by them. 

3.2 Environmental Protection Requirements for Products 

The supplier shall comply with all applicable laws and regulations regarding prohibited or restricted substances, as well as customer requirements, such as RoHS and REACH. They shall take effective measures to prohibit or limit the use of specific substances in the products and/or during the manufacturing process. 

3.3 Preventing Environmental Pollution 

The supplier shall comply with all applicable laws and regulations concerning pollutants (including wastewater, waste gas, and solid waste), including requirements related to manufacturing, transportation, storage, treatment, and discharge. They should reduce or eliminate the generation and discharge of pollution from the source, prohibit the illegal discharge of toxic and harmful pollutants, and prevent noise pollution. 

3.4 Energy Conservation and Emission Reduction 

The supplier should adopt measures for conservation and substitution to reduce the consumption of energy, water and natural resources, thereby minimizing greenhouse gas emissions. 

  IV. Business Ethics

  4.1 Honesty and Integrity 

It is prohibited for suppliers to engage in corrupt or dishonest activities. They must adhere to the principle of "no association, no bribery, no substandard products, no shoddy workmanship, no fraud, no commercial fraud, and keeping their promises", which is known as the "six prohibitions and one commitment". For details, please refer to the "Confidentiality and Integrity Commitment Letter" / "Confidentiality and Integrity Agreement". 

4.2 Intellectual Property Rights 

The supplier should respect intellectual property rights. They should transfer technologies, experiences, knowledge or information in a manner that protects intellectual property rights, and should also protect customer information. 

4.3 Fair Trading, Advertising and Competition 

We should adhere to the standards of fair trading, advertising and competition. Customer information must be protected in an appropriate manner. 

4.4 Identity Protection and Non-retaliation Policy 

Unless prohibited by law, procedures should be established to protect upstream suppliers and whistleblower employees and to ensure the confidentiality and anonymity of their identities. Suppliers should develop communication procedures that allow employees to raise concerns without fearing retaliation. 

Whistleblower: refers to anyone who exposes the misconduct of a certain employee or official of a company, or of a public official or an official institution. 

4.5 Responsible Mineral Procurement 

The supplier should commit to and take reasonable actions to prevent the mining and trading of metals such as tantalum, tin, tungsten, gold and cobalt in their products from directly or indirectly contributing to illegal armed conflicts, or supporting human rights violations, environmental harm, or health risks. The supplier should conduct due diligence on the sources of these minerals and the supply chain for production and sales, and provide the measures taken in accordance with regulations or customer requirements. 

4.6 Privacy 

The supplier should commit to protecting the reasonable privacy expectations of all business-related personnel, including the supplier, customers, consumers and employees, regarding their personal information. The supplier should comply with the requirements of privacy and information security laws and regulations when collecting, storing, processing, transmitting and sharing personal information. 

V. Management System Requirements

5.1 Company Commitments and Management Responsibilities 

The senior management of the supplier should issue the corporate social responsibility policy statement in the local language, and should commit to complying with applicable laws and regulations, meeting customer requirements, adhering to the requirements of this code, and continuously improving. 

The supplier should clearly designate a senior manager to be responsible for corporate social responsibility, identify and control risks, conduct regular internal audits and management reviews, establish an internal assessment and accountability mechanism, and promote continuous improvement. 

5.2 Risk Assessment and Risk Management 

The supplier, in accordance with applicable laws and regulations and customer requirements (including the requirements of this guideline), identifies the corporate social responsibility risks and potential impacts related to the supplier's operations. Based on the relative importance of the risks, it implements appropriate procedures and substantive control measures to control and minimize the risks and eliminate the impacts. 

5.3 Management of Upstream Suppliers 

The supplier should establish a CSR management system for procurement and incorporate the requirements of this guideline as procurement requirements in the management of upstream suppliers. This includes requiring upstream suppliers to sign written commitments as the certification standard for selecting upstream suppliers, conducting regular audits to ensure continuous compliance and promoting continuous improvement. 

5.4 Internal Audit and Management Review 

Suppliers should conduct regular audits of their own factories and their upstream suppliers to ensure compliance with laws and this code of conduct. The top management of suppliers should regularly review their own and their upstream suppliers' social responsibility management systems to ensure their ongoing suitability, adequacy and effectiveness.